Being in the farming industry comes with a lot of expenses. One of the greatest expenses involves buying and maintaining equipment. While this may not be an issue for larger farms, smaller agricultural entrepreneurs have a harder time buying new equipment, subsequently making it difficult to make money.
If you’re a small farm that needs new equipment, you have options. Below is a brief list of ways you can get the farming equipment you need without compromising your budget.
You may qualify for a commercial loan to purchase your equipment. The beauty of this bank arrangement is that you can get the total amount in advance and gradually pay off the balance over either months or years. The profit you make from the new equipment will help your business and also help you pay back your financing loan. Using a loan to get your farm started can help give you the momentum you need to start earning an income from your work.
Take a Look at Your Overall Costs
Take a look at the current costs you accumulate using your older equipment. Do you pay monthly expenses to maintain your farming equipment? How much are your monthly energy bills?
While buying equipment may seem like a major hit to your overall budget, consider how buying energy-efficient equipment can save you money on future energy and repair bills. Choosing to hold off buying equipment for too long can eventually lead to the malfunction of your existing farming. Contemplate this scenario, especially if the bulk of your productivity relies on a specific farming appliance.
Try Negotiating Price
Never underestimate the value of bartering. You may be able to negotiate with the equipment dealership similar to how you would at an automobile lot to get a reduced price. Once you see the price, make a counteroffer or ask if they’re willing to take a percentage of the price off.
If you have goods that you sell that may be of value to the dealer, you can try offering them while making your deal. Although this method isn’t a guarantee, it’s always worth a try.
Being on a budget can be difficult, especially when you need new equipment. Understanding you have the previously mentioned options can help you replace damaged or broken farming appliances, even if you only have a small amount to invest.
However, if you decide to pay for farming equipment, make sure the purchase makes sense. Be sure you’re purchasing new equipment out of assessment to be financially responsible. Never compromise your budget in the name of a tax write-off.